AB1170, s. 1 1Section 1. 77.61 (11) of the statutes is amended to read:
AB1170,3,102 77.61 (11) Any city, village or town clerk or other official whose duty it is to issue
3licenses or permits to engage in a business involving the sale at retail of tangible
4personal property subject to tax under this subchapter, or the furnishing of services
5so subject to tax, shall, before issuing such license or permit, require proof that the
6person to whom such license or permit is to be issued is the holder of a seller's permit
7as required by or is registered to collect, report, and remit use tax under this
8subchapter or has been informed by an employee of the department that the
9department will issue a seller's permit to that person or register that person to
10collect, report, and remit use tax
.
AB1170, s. 2 11Section 2. 134.65 (1) of the statutes is amended to read:
AB1170,3,1912 134.65 (1) No person shall in any manner, or upon any pretense, or by any
13device, directly or indirectly sell, expose for sale, possess with intent to sell,
14exchange, barter, dispose of or give away any cigarettes or tobacco products to any
15person not holding a license as herein provided or a permit under ss. 139.30 to 139.41
16or 139.79 to 139.795 without first obtaining a license from the clerk of the city, village
17or town wherein such privilege is sought to be exercised. This subsection does not
18apply to a person who holds a valid permit under s. 139.345 or 139.795 and who sells
19cigarettes or tobacco products solely as a direct marketer.
AB1170, s. 3 20Section 3. 134.65 (1n) of the statutes is created to read:
AB1170,4,3
1134.65 (1n) (a) The department of revenue shall prepare an application form
2for licenses issued under this section. In addition to the information required under
3sub. (1m), the form shall require all of the following information:
AB1170,4,54 1. The applicant's history relevant to the applicant's fitness to hold a license
5under this section.
AB1170,4,66 2. The kind of license for which the applicant is applying.
AB1170,4,77 3. The premises where cigarettes or tobacco products will be sold or stored.
AB1170,4,98 4. If the applicant is a corporation, the identity of the corporate officers and
9agent.
AB1170,4,1110 5. If the applicant is a limited liability company, the identity of the company
11members or managers and agent.
AB1170,4,1212 6. The applicant's trade name, if any.
AB1170,4,1313 7. Any other information required by the department.
AB1170,4,1514 (b) The department of revenue shall provide 1 copy of each application prepared
15under this subsection to each city, village, and town.
AB1170,4,1716 (c) Each applicant for a license under this section shall use the application form
17prepared under this subsection.
AB1170,4,2018 (d) 1. Each application for a license under this section shall be sworn to by the
19applicant and the applicant shall submit the application with the clerk of the city,
20village, or town where the intended place of sale is located.
AB1170,4,2321 2. Within 10 days of any change in any fact set forth in an application, the
22applicant or license holder shall file a written description of the change with the clerk
23of the city, village, or town where the application was submitted.
AB1170,5,224 3. Any person may inspect applications submitted under this paragraph. The
25clerk of each city, village, or town where such applications are submitted shall retain

1all applications submitted under this paragraph, but may destroy all applications
2that have been retained for 4 years or longer.
AB1170, s. 4 3Section 4. 134.65 (1r) of the statutes is created to read:
AB1170,5,54 134.65 (1r) (a) No license under sub. (1) may be issued to any person to whom
5any of the following applies:
AB1170,5,76 1. Subject to ss. 111.321, 111.322, and 111.335, the person has an arrest record
7or a conviction record.
AB1170,5,98 2. Subject to ss. 111.321, 111.322, and 111.335, the person has been convicted
9of a felony, or as a repeat or habitual offender, unless pardoned.
AB1170,5,1010 3. The person has not submitted proof as provided under s. 77.61 (11).
AB1170,5,1111 4. The person is not 18 years of age or older.
AB1170,5,1712 (b) The requirements under par. (a) apply to all partners of a partnership, all
13members of limited liability company, all agents of a limited liability company or
14corporation, and all officers of a corporation. Subject to ss. 111.321, 111.322, and
15111.335, if a business entity has been convicted of a crime, the entity may not be
16issued a license under sub. (1) unless the entity has terminated its relationship with
17the individuals whose actions directly contributed to the conviction.
AB1170, s. 5 18Section 5. 134.65 (2) (a) of the statutes is amended to read:
AB1170,5,2419 134.65 (2) (a) Except Subject to sub. (1r), and except as provided in par. (b),
20upon filing of a proper written application a license shall be issued on July 1 of each
21year or when applied for and continue in force until the following June 30 unless
22sooner revoked. The city, village or town may charge a fee for the license of not less
23than $5 nor more than $100 per year which shall be paid to the city, village or town
24treasurer before the license is issued.
AB1170, s. 6 25Section 6. 134.65 (5) of the statutes is amended to read:
AB1170,6,12
1134.65 (5) Any person violating this section shall be fined not more than $100
2$1,000 nor less than $25 $500 for the first offense and not more than $200 $5,000 nor
3less than $25 $1,000 or imprisoned not exceeding 180 days or both for the 2nd or
4subsequent offense. If upon such 2nd or subsequent violation, the person so violating
5this section was personally guilty of a failure to exercise due care to prevent violation
6thereof, the person shall be fined not more than $300 nor less than $25 or imprisoned
7not exceeding 60 days or both. Conviction
Upon conviction of a 2nd or subsequent
8offense, the court
shall immediately terminate the license of the person convicted of
9being personally guilty of such failure to exercise due care and the person shall not
10be entitled to another license hereunder for a period of 5 years thereafter, nor shall
11the person in that period act as the servant or agent of a person licensed hereunder
12for the performance of the acts authorized by such license.
AB1170, s. 7 13Section 7. 134.66 (2) (d) of the statutes is created to read:
AB1170,6,1614 134.66 (2) (d) No manufacturer, direct marketer, distributor, jobber, subjobber
15or retailer, or their employees or agents, may provide cigarettes or tobacco products
16for nominal or no consideration to any person under the age of 18.
AB1170, s. 8 17Section 8. 134.66 (3m) of the statutes is created to read:
AB1170,6,2018 134.66 (3m) Defense of direct marketer. Proof of all of the following facts by
19a direct marketer who sells cigarettes or tobacco products to a person under the age
20of 18 is a defense to any prosecution for a violation under sub. (2) (a):
AB1170,6,2221 (a) That the direct marketer used a mechanism, approved by the department
22of revenue, for verifying the age of the purchaser.
AB1170,6,2423 (b) That the purchaser falsely represented that he or she had attained the age
24of 18 and presented a copy or facsimile of an identification card.
AB1170,7,2
1(c) That the name and birthdate of the purchaser, as indicated by the purchaser,
2matched the name and birthdate on the identification presented under par. (b).
AB1170,7,53 (d) That the sale was made in good faith, in reasonable reliance on the
4mechanism described in par. (a) and the representation and identification under
5pars. (b) and (c), and in the belief that the purchaser had attained the age of 18.
AB1170, s. 9 6Section 9. 139.30 (4n) of the statutes, as created by 2005 Wisconsin Act 25, is
7repealed and recreated to read:
AB1170,7,88 139.30 (4n) "Identification card" has the meaning given in s. 134.66 (1) (c).
AB1170, s. 10 9Section 10. 139.30 (7) of the statutes is amended to read:
AB1170,7,1210 139.30 (7) "Manufacturer" means any person who directly manufactures
11cigarettes for the purpose of sale, including the authorized agent of a person who
12directly manufactures cigarettes for the purpose of sale.
AB1170, s. 11 13Section 11. 139.30 (8s) of the statutes is created to read:
AB1170,7,1614 139.30 (8s) "Person" means any individual, sole proprietorship, partnership,
15limited liability company, corporation, or association, or any owner of a single-owner
16entity that is disregarded as a separate entity under ch. 71.
AB1170, s. 12 17Section 12. 139.32 (4) of the statutes is amended to read:
AB1170,7,2018 139.32 (4) In lieu of stamps the secretary may authorize impressions applied
19by the use of meter machines. The secretary shall prescribe by rule the type of
20impression and the kind of machines which may be used.
AB1170, s. 13 21Section 13. 139.321 (1) (intro.) of the statutes, as affected by 2005 Wisconsin
22Act 25
, is amended to read:
AB1170,7,2523 139.321 (1) (intro.) It is unlawful for any person to purchase or possess
24cigarettes unless the required stamps are properly affixed as provided in ss. 139.32
25(1) and 139.33 (4).
AB1170, s. 14
1Section 14. 139.321 (1) (a) 1. of the statutes is amended to read:
AB1170,8,32 139.321 (1) (a) 1. Manufacturers, bonded direct marketers, distributors or
3warehouse operators possessing valid permits issued by the secretary.
AB1170, s. 15 4Section 15. 139.34 (1) (a) of the statutes is amended to read:
AB1170,8,105 139.34 (1) (a) No person may manufacture cigarettes in this state or sell
6cigarettes in this state as a distributor, manufacturer, jobber, vending machine
7operator, direct marketer, or multiple retailer and no person may operate a
8warehouse in this state for the storage of cigarettes for another person without first
9filing an application for and obtaining the proper permit to perform such operations
10from the department.
AB1170, s. 16 11Section 16. 139.34 (1) (b) of the statutes is repealed.
AB1170, s. 17 12Section 17. 139.34 (1) (c) (intro.) of the statutes is amended to read:
AB1170,8,1413 139.34 (1) (c) (intro.) Subject to ss. 111.321, 111.322 and 111.335, no No permit
14under this section may be granted to any person to whom any of the following applies:
AB1170, s. 18 15Section 18. 139.34 (1) (c) 3m. of the statutes is created to read:
AB1170,8,1716 139.34 (1) (c) 3m. The person has not submitted proof as provided under s.
1777.61 (11).
AB1170, s. 19 18Section 19. 139.34 (1) (c) 4m. of the statutes is created to read:
AB1170,8,1919 139.34 (1) (c) 4m. The person is 18 years of age or older.
AB1170, s. 20 20Section 20. 139.34 (1) (cm) of the statutes is created to read:
AB1170,8,2421 139.34 (1) (cm) The requirements under par. (c) apply to all partners of a
22partnership, all members of a limited liability company, all agents, directors, and
23shareholders of a limited liability company or corporation, and all officers of a
24corporation.
AB1170, s. 21 25Section 21. 139.34 (4) of the statutes is amended to read:
AB1170,9,6
1139.34 (4) A separate permit shall be required of and issued to each class of
2permittee and the holder of any permit shall perform only the operations thereby
3authorized. Such permit shall not be transferable from one person to another or from
4one premises to another. A separate permit shall be required for each place where
5cigarettes are stamped or where cigarettes are stored for sale at wholesale or,
6through vending machines or multiple retail outlets, or by direct marketing.
AB1170, s. 22 7Section 22. 139.34 (6) of the statutes is amended to read:
AB1170,9,118 139.34 (6) A vending machine operator or a multiple retailer may acquire
9unstamped cigarettes from the manufacturers thereof and affix the stamps to
10packages or other containers only if the vending machine operator or multiple
11retailer also holds a permit as a distributor or bonded direct marketer.
AB1170, s. 23 12Section 23. 139.34 (8) of the statutes is amended to read:
AB1170,9,1813 139.34 (8) The holder of a warehouse permit is entitled to store cigarettes on
14the premises described in the permit. The warehouse permit shall not authorize the
15holder to sell cigarettes. Unstamped cigarettes stored in a warehouse for a
16manufacturer, bonded direct marketer, or distributor may be delivered only to a
17person holding a permit as a manufacturer or, distributor, or bonded direct marketer
18who is authorized by the department to purchase and affix tax stamps
.
AB1170, s. 24 19Section 24. 139.345 (1) (a) (intro.) of the statutes, as created by 2005 Wisconsin
20Act 25
, is amended to read:
AB1170,9,2521 139.345 (1) (a) (intro.) No person may sell cigarettes to consumers in this state
22as a direct marketer or solicit sales of cigarettes to consumers in this state by direct
23marketing
unless the person submits to has obtained a permit from the department
24the person's name, trade name, address of the person's principal place of business,
25phone number, e-mail address, and Web site address
to make such sales or

1solicitations. The person shall file an application for a permit under this subsection
2with the department, in the manner prescribed by the department
.
AB1170, s. 25 3Section 25. 139.345 (1) (b) of the statutes, as created by 2005 Wisconsin Act
425
, is amended to read:
AB1170,10,155 139.345 (1) (b) No person may sell cigarettes as described under this section
6The department may not issue a permit to a person under par. (a) unless the person
7certifies to the department, in the manner prescribed by the department, that the
8person shall acquire stamped cigarettes from a licensed distributor or unstamped
9cigarettes from the manufacturer thereof, pay the tax imposed under this subchapter
10on all unstamped cigarettes and affix stamps to the cigarette packages or containers
11as provided under s. 139.32 (1), store such packages or containers, and sell only such
12packages or containers to consumers in this state by direct marketing; or acquire
13cigarettes from a distributor, to the packages or containers of which stamps have
14been affixed as provided under s. 139.32 (1), and sell only such packages or
15containers to consumers in this state by direct marketing.
AB1170, s. 26 16Section 26. 139.345 (1) (d) of the statutes, as created by 2005 Wisconsin Act
1725
, is amended to read:
AB1170,10,2518 139.345 (1) (d) No person may sell cigarettes as described in this section The
19department may not issue a permit to a person under par. (a)
unless the person
20certifies to the department, in the manner prescribed by the department, that the
21person shall register with credit card and debit card companies; that the invoices and
22all means of solicitation for all shipments of cigarette sales from the person shall bear
23the person's name and address and the permit number of the permit ultimately
24issued under this subsection
; and that the person shall provide the department any
25information the department considers necessary to administer this section.
AB1170, s. 27
1Section 27. 139.345 (3) (intro.) of the statutes, as created by 2005 Wisconsin
2Act 25
, is amended to read:
AB1170,11,43 139.345 (3) (intro.) No person may sell cigarettes to consumers a consumer in
4this state unless the person does all of the following:
AB1170, s. 28 5Section 28. 139.345 (3) (a) (intro.) of the statutes, as created by 2005 Wisconsin
6Act 25
, is amended to read:
AB1170,11,87 139.345 (3) (a) (intro.) Verifies the consumer's name identity and address and
8that the consumer is at least 18 years of age by any of the following methods:
AB1170, s. 29 9Section 29. 139.345 (3) (a) 2. of the statutes, as created by 2005 Wisconsin Act
1025
, is renumbered 139.345 (3) (a) 2. a. and amended to read:
AB1170,11,1211 139.345 (3) (a) 2. a. The person receives from the consumer, at the time of
12purchase, a copy of a government issued an identification card.
AB1170, s. 30 13Section 30. 139.345 (3) (a) 2. b. of the statutes is created to read:
AB1170,11,1514 139.345 (3) (a) 2. b. The name specified on the identification card matches the
15name of the consumer.
AB1170, s. 31 16Section 31. 139.345 (3) (a) 2. c. of the statutes is created to read:
AB1170,11,1817 139.345 (3) (a) 2. c. The birth date on the identification card verifies that the
18consumer is at least 18 years of age.
AB1170, s. 32 19Section 32. 139.345 (7) (a) of the statutes, as created by 2005 Wisconsin Act
2025
, is amended to read:
AB1170,12,321 139.345 (7) (a) No person may deliver a package of cigarettes sold by direct
22marketing to a consumer in this state unless the person making the delivery receives
23 a government issued an identification card from the person receiving the package
24and verifies that the person receiving the package is at least 18 years of age. If the
25person receiving the package is not the person to whom the package is addressed, the

1person delivering the package shall have the person receiving the package sign a
2statement that affirms that the person to whom the package is addressed is at least
318 years of age.
AB1170, s. 33 4Section 33. 139.345 (8) of the statutes is created to read:
AB1170,12,85 139.345 (8) (a) No person may sell cigarettes to consumers in this state by direct
6marketing unless the tax imposed under s. 139.31 (1) is paid on the cigarettes and
7stamps are affixed to the cigarette packages or containers as provided under s.
8139.32.
AB1170,12,129 (b) No person may sell cigarettes to consumers in this state by direct marketing
10unless the cigarette brands are approved by the department and listed in the
11directory of certified tobacco product manufacturers and brands as provided under
12s. 895.12 (2) (b).
AB1170, s. 34 13Section 34. 139.345 (9) of the statutes is created to read:
AB1170,12,1814 139.345 (9) Any person who, without having a valid permit under sub. (1), sells
15or solicits sales of cigarettes to consumers in this state by direct marketing shall pay
16a penalty to the department of $5,000 or an amount that is equal to $50 for every 200
17cigarettes, or fraction of 200 cigarettes, sold to consumers in this state by direct
18marketing, whichever is greater.
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